How to Undo or Delete Reconciliation in QuickBooks Online

Keeping QuickBooks Online (QBO) records accurate requires you to reconcile your data. It verifies that what appears in your accounting software also appears on your bank and credit card records. Nevertheless, it is possible that you must remove an entry for reconciliation as a result of errors, alterations, or inaccuracies. This article explains how to cancel a reconciliation in QuickBooks Online, as well as why and what alternatives to use.

Why You Might Need to Undo or Delete Reconciliation in QuickBooks Online?

Various situations may encourage you to reverse a reconciliation:

• Errors in Data Entry

An inaccurate reconciliation can result from errors while entering data in transactions.

• Missing Transactions

A reconciliation cannot be complete if you do not import transactions or enter them into QuickBooks Online ahead of time.

• A Balance that Does Not Match

An incorrect initial balance can cause you to go off in your reconciliation.

• Duplicate Transactions

Doubling the same transaction will lead to issues.

• Bank Errors

Sometimes, if your statement has a bank error, you will need to reverse your reconciliation after it is corrected.

• Sorting Transactions to the Wrong Account

Choosing the wrong account when reconciling your bank statement.

Can You Undo or Delete Reconciliation in QuickBooks Online? (Limitations)

You cannot use QuickBooks Online to delete all the information in one reconciliation. Instead, just forget about it happening.

• Accountant’s Auto Undo Feature

There is a special tool in QuickBooks Online Accountant that helps you reverse all your reconciliation steps at once. This is the most effective way to reverse a completed reconciliation.

• Manual Un-reconciliation

When using QuickBooks Online regularly, each transaction in the reconciled period must be manually un-reconciled. If you have so many different transactions, checking each line can take quite a while.

You may read this: How to Reconcile in QuickBooks

How to Undo or Delete Reconciliation in QuickBooks Online

If you are using QuickBooks Online Accountant, here’s how to change a reconciliation.

1. Access your Client’s QuickBooks

Go to your QuickBooks Online Accountant account and choose the company you are working with.

2. Head to the Reconcile section

Find Accounting in the left navigation bar and then click Reconcile.

3. View History by Account

Right on the Reconcile screen, identify the History by account button.

4. Pick the Account you wish to view

From the drop-down menu, pick the bank or credit card account you want to reverse the reconciliation for.

5. Search for the Reconciliation

Pick the error you want to reverse from the list provided.

6. Undo

From the selected reconciliation row, select the small drop-down arrow beneath the Action column and click Undo.

7. Confirm

The result will be shown with a notice. You must click Yes when you’re prepared to undo the reconciliation.

Note: This action will restore all the transactions within that reconciliation, so you can correct your reconciliation.

Manually Undo or Delete Reconciliation from Transactions in QuickBooks Online

To remove reconciliation from your old transactions, you’ll have to do each transaction one by one. You should use this method if you don’t want to un-reconcile the entire reconciliation, but just re-verify a few transactions.

1. Visit the Chart of Accounts section.

The Chart of Accounts opens up when you click on Accounting from the left navigation panel.

2. Look for the Account setting.

Click View Register after selecting the account you wish to analyze (or Run report and choose the transactions).

3. Mark all the entries you have already reconciled.

Next to your row is a checkmark column. Transactions that have been reconciled will have a letter “R” here.

4. Click to Un-reconcile

In the checkmark column, click the letter “R” for the transaction you want to adjust out of reconciliation. Clicking on any document will take you through the different reconciliation stages.

• Blank: Not reconciled
• C: QBO believes it is cleared, but it still needs to be reconciled.
• R: Continue clicking on Reconciled until you want the “R” to clear or turn into a “C.”

5. Save Changes

Don’t forget to save each time you complete un-reconciling a transaction.

You may also read this: Mini Reconciliation in QuickBooks

Things to Keep in Mind Before Deleting

Consider the following prior to reversing a reconciliation process:

• Impact on Reporting

If you undo a reconciliation, your financial reports (Balance Sheet and Bank Reconciliation Report) for that period will be affected.

• Audit Trail

Viewing an audit trail is available through the app. An audit log will track the process of undoing a reconciliation or un-reconciling transactions.

• Timing

If you have multiple errors across different periods, it’s best to reverse the most recent reconciliation at the beginning.

• Find the main reason behind the issue

Investigate the reasons for breaking off reconciliation to prevent making the same mistakes again when you re-establish it.

• Backup (Not directly in QuickBooks Online)

Your data is automatically backed up by QuickBooks Online, but you should constantly be aware of what significant changes can do. When you are not sure what to do, speaking to an accountant is wise.

Conclusion

Even though QuickBooks Online doesn’t provide a remove reconciliation button, you can still effectively un-reconcile any transaction. Online Accountant users can undo actions more simply, whereas other users must take action on reconciled transactions manually. First, look at how what happened affects your financial records, then handle the reasons for the problem before reconciling again.

Frequently Asked Questions

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